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Junnikkala continues significant expansion

 Thursday, December 23, 2021

One of the biggest sawmill companies in Northern Finland, Junnikkala, is preparing for a big investment that will launch the construction of a modern sawmill unit in Oulu. Construction will begin in 2022 and will be finished by the end of 2023. The 70 million euro investment will be the biggest investment in Junnikkalas’ history. Currently Junnikkala has two sawmills in Northern Finland in Kalajoki and Oulainen.

The investment will utilise state of the art sawmill technology and Nordic innovation, setting the foundation for future investments for Junnikkala. The increasing demand for high-quality and sustainable timber products in the construction industry on a global scale combined with the positive development of the sawmill industry, provides the opportunity for the investment.

“The new sawmill in Oulu will make Junnikkala an even stronger company in the market that needs to be able to meet the demand of the carbon neutral construction challenge. The new sawmill in the capital of Northern Finland will support our sustainable growth strategy, and we are building for the future in the long haul. The latest sawmill innovations will be applied in our new unit which will ensure that we can make use of the high-quality raw material to its maximum,” says Kalle Junnikkala the CEO of Junnikkala.

The modern sawmill can process the timber in all sizes and the enclosed sawing process minimizes the internal traffic at the factory. The location of the sawmill creates great logistic synergies in receiving the material, delivering the by-products for energy production and the transportation of the timber products.

With the investment, Junnikkala production increases up to 650.000 m3 which means procuring 1,4 million cubic metres of wood per year and makes the company one of the largest among the sawmill industry in Finland. The annual turnover is estimated to be about 250 million euros. Upto 90 percent of the production of the new Oulu sawmill will be exported from the Port of Oulu to 50 different countries all over the world.

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